Question
Apple has a $477 billion market cap (the value of their equity) and $17 billion in long term debt (market value of their debt). Yahoo
Apple has a $477 billion market cap (the value of their equity) and $17 billion in long term debt (market value of their debt). Yahoo Finance estimates their Beta at 0.58 and the cost of their debt (required rate of return on debt) of 3%. If the market is expected to return 8%, the risk free rate is 1%, and the corporate tax rate is 30%, what is Apple's WACC?
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
